Presentation – Startup Finance: A Guide by Guðbjörg Eggertsdóttir
Finance for start-ups, financial planning, and cash-flows are essential funding. Resources are necessary to establish a company, or a new product on the market.
In today’s competitive business landscape, securing adequate financial support is crucial for the success of any start-up. By carefully assessing their financial needs and developing a comprehensive financial plan, entrepreneurs can position themselves for growth and sustainability.
Moreover, effective management of cash flows is another key factor that determines the survival of start-ups. Maintaining a healthy cash flow ensures that the company can meet its day-to-day operational expenses, invest in growth opportunities, and navigate through unforeseen challenges.
Ultimately, understanding the importance of finance in start-ups and making informed decisions regarding resource allocation can set the foundation for long-term success in the dynamic business world.
Tools we frequently use are:
Projection
Cash flow
Income forecast
Spending
Startup cost
Detailed expense analysis monthly1.xlsx
Projection is used to forecast income and expenses for a period. When conducting a financial projection, it is crucial to consider factors such as historical data, market trends, and future projections. By analyzing these elements, businesses can make informed decisions and plan for potential financial risks.
One important aspect of projection is estimating future sales. This involves analyzing sales patterns, market demand, and potential fluctuations in customer behavior. Additionally, businesses must also consider external factors that can impact sales, such as economic conditions and industry trends.
Another key component of projection is predicting expenses. This includes analyzing various cost factors such as production costs, marketing expenses, and overhead costs. By accurately estimating expenses, businesses can determine whether their projected income is sufficient to cover these costs and ensure financial stability.
Overall, projection serves as a powerful tool for businesses to plan for the future. By conducting thorough analyses and considering various factors, businesses can make realistic projections that guide their financial decisions and help them stay on track towards their goals.
Small business cash flow projection1.xlsx
Cash flow is to predict future cash, it is important to have positive cash flow and forecast inventory and other expenses, as well as income. When businesses have a healthy cash flow, they are better equipped to meet their financial obligations and plan for growth. It allows them to invest in new projects or products, hire talented individuals, and weather any unexpected downturns in the market.
One key aspect of managing cash flow is forecasting inventory and other expenses. This involves carefully tracking the inventory levels and anticipating future expenses such as rent, utilities, and salaries. By accurately estimating these costs, businesses can ensure they have enough cash on hand to cover their obligations and avoid any potential cash flow gaps.
Additionally, forecasting income plays a crucial role in managing cash flow. Businesses need to project their expected revenue and take into account factors that might impact their sales, such as seasonal fluctuations or changes in consumer behaviour. By forecasting their income accurately, businesses can make informed decisions about their cash flow, including adjusting their expenses or pursuing new revenue streams.
In conclusion, cash flow is a vital aspect of financial management for businesses. By maintaining a positive cash flow, forecasting inventory and expenses, and accurately projecting their income, businesses can enhance their financial stability and position themselves for long-term success.
The Income statement
The income statement, shows to us the income and the expenses, if income is higher we have profit otherwise there is a loss. Moving forward, it is essential to analyze this financial information to make informed decisions about the company’s financial health and future prospects.
Firstly, a thorough examination of the income statement allows us to identify the sources of income and expenses. By understanding the various revenue streams and cost elements, we can pinpoint areas of strength and weakness within the business operations.
Additionally, analyzing the income statement enables us to gauge the company’s profitability over a specific period. By comparing revenue to expenses, we can assess whether the business is generating sustainable profits or incurring losses. This analysis serves as a crucial tool for investors, creditors, and stakeholders to evaluate the company’s financial performance.
Furthermore, the income statement provides valuable insights into the company’s financial sustainability. By consistently monitoring and reviewing the income statement, companies can make informed decisions regarding pricing strategies, cost management, and investment opportunities to ensure long-term success and growth.
In summary, the income statement plays a pivotal role in understanding a company’s financial performance, profitability, and sustainability. Analyzing this essential financial document provides valuable insights, enabling businesses to make informed decisions and plan for the future.
Balance sheet
Start-up balance sheet. For a new business, a balance sheet is a financial statement that provides a snapshot of its financial position at a specific point in time. It showcases the company’s assets, liabilities, and owners’ equity. By analyzing this information, investors and stakeholders can assess the firm’s financial health and capabilities.
Moving forward, it is important to consider that a balance sheet is divided into three main sections: assets, liabilities, and owners’ equity. Assets typically include cash, accounts receivable, inventory, and property. Liabilities encompass debts, accounts payable, and other financial obligations. Lastly, owners’ equity reflects the difference between assets and liabilities, representing the net worth of the business.
In conclusion, a well-prepared balance sheet provides valuable insights into a start-up’s financial position. It helps potential investors and lenders evaluate the company’s ability to generate profits and repay debts. For a start-up, maintaining an accurate and up-to-date balance sheet is crucial for strategic decision-making and financial planning.
https://island.is/reglugerdir/nr/0696-2019
Financial analysis is a crucial tool for businesses to evaluate their financial health, performance, and stability. It involves assessing financial statements, ratios, and trends to make informed decisions and plans for the future. By conducting a thorough analysis, companies can identify strengths, weaknesses, opportunities, and threats, allowing them to adjust their strategies accordingly.
One of the key benefits of financial analysis is its ability to provide valuable insights into a company’s profitability and efficiency. By examining metrics such as return on investment, profit margins, and asset utilization, businesses can pinpoint areas for improvement and growth. This information is essential for making strategic decisions on investments, expansion, and cost-cutting measures.
Moreover, financial analysis plays a vital role in facilitating communication with stakeholders, such as investors, creditors, and management. By presenting clear and concise financial data and analysis, companies can build trust, attract investments, and demonstrate their ability to achieve financial goals. This transparency fosters confidence in the organization and enhances its reputation in the eyes of external parties.
Thanks, Björg! Since you’re starting a hybrid service business—offering both physical and digital services—your cost structure will need to cover both fronts. Here’s a tailored breakdown to help you plan:
🧱 Physical Service Costs
These are expenses tied to your in-person offerings:
- Space rental or lease: Office, studio, or storefront
- Utilities: Electricity, heating, water, internet
- Furniture and equipment: Desks, chairs, signage, tools
- Licenses and permits: Local business registration, health/safety compliance
- Insurance: Liability, property, and possibly workers’ compensation
- Staffing: Salaries, uniforms, training
🌐 Digital Service Costs
These support your online presence and virtual offerings:
- Website development: Domain, hosting, design, e-commerce setup
- Software tools: CRM, scheduling, invoicing, video conferencing
- Digital marketing: SEO, social media ads, email campaigns
- Online payment systems: Stripe, PayPal, or local equivalents
- Cybersecurity: SSL certificates, data protection tools
🔁 Shared or Overlapping Costs
These apply to both sides of your business:
- Branding: Logo, business cards, signage, digital assets
- Legal and accounting: Contracts, bookkeeping, tax filing
- Marketing strategy: Unified messaging across platforms
- Customer support: Phone, email, chat tools
💰 Estimated Budget Ranges (in USD)
Expense Category Low Budget ($) Mid Budget ($) High Budget ($)
Physical Setup 2,000–5,000 5,000–15,000 15,000+
Digital Infrastructure 1,000–3,000 3,000–10,000 10,000+
Marketing & Branding 500–2,000 2,000–5,000 5,000+
Legal & Admin 500–1,500 1,500–3,000 3,000+
Working Capital (3–6 mo) 5,000–10,000 10,000–30,000 30,000+
Would you like help estimating costs for a specific type of service—like wellness, consulting, education, or creative work? I can build a custom budget and checklist for your exact business model.
Copilot
Canva Cost Structure
https://www.canva.com/design/DAG0hnYg7Es/no7zTLCIXA2sflzVvKF1QA/view
7 H H 